Item 8.01. Other Events.
On February 14, 2019, Altria Group, Inc. (the “Company”) issued $1,000,000,000 aggregate principal amount of its 3.490% Notes due 2022 (the “2022 Notes”), $1,000,000,000 aggregate principal amount of its 3.800% Notes due 2024 (the “2024 Notes”), $1,500,000,000 aggregate principal amount of its 4.400% Notes due 2026 (the “2026 Notes”), $3,000,000,000 aggregate principal amount of its 4.800% Notes due 2029 (the “2029 Notes”), $2,000,000,000 aggregate principal amount of its 5.800% Notes due 2039 (the “2039 Notes”), $2,500,000,000 aggregate principal amount of its 5.950% Notes due 2049 (the “2049 Notes”) and $500,000,000 aggregate principal amount of its 6.200% Notes due 2059 (the “2059 Notes” and, together with the 2022 Notes, the 2024 Notes, the 2026 Notes, the 2029 Notes, the 2039 Notes and the 2049 Notes, the “Notes”). The Notes were issued pursuant to an Indenture (the “Indenture”), dated as of November 4, 2008, among the Company, Philip Morris USA Inc., a wholly-owned subsidiary of the Company (“PM USA”), and Deutsche Bank Trust Company Americas, as trustee (the “Trustee”). Each series of Notes is guaranteed by PM USA. PM USA’s guarantees were issued pursuant to the Indenture and are evidenced by guarantee agreements made by PM USA in favor of the Trustee for the Notes (the “Guarantee Agreements”).
The Notes are the Company’s senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future senior unsecured indebtedness. The Guarantee Agreements are PM USA’s senior unsecured obligations and rank equally in right of payment with all of PM USA’s existing and future senior unsecured indebtedness.
On February 12, 2019, the Company and PM USA entered into a Terms Agreement (the “Terms Agreement”) with Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC, as representatives of the several underwriters named therein (the “Underwriters”), pursuant to which the Company agreed to issue and sell the Notes to the Underwriters. The provisions of an Underwriting Agreement, dated as of November 4, 2008 (the “Underwriting Agreement”), are incorporated by reference in the Terms Agreement.
Interest on the Notes is payable semiannually on February 14 and August 14 of each year, commencing August 14, 2019, to holders of record on the preceding January 30 or July 30, as the case may be.
The 2022 Notes will mature on February 14, 2022, the 2024 Notes will mature on February 14, 2024, the 2026 Notes will mature on February 14, 2026, the 2029 Notes will mature on February 14, 2029, the 2039 Notes will mature on February 14, 2039, the 2049 Notes will mature on February 14, 2049 and the 2059 Notes will mature on February 14, 2059.
The Company has filed with the Securities and Exchange Commission a Prospectus dated October 26, 2017 (RegistrationNo. 333-221133) and a Prospectus Supplement dated February 12, 2019 in connection with the public offering of the Notes.
The descriptions of the Underwriting Agreement, the Terms Agreement and the Guarantee Agreements are qualified in their entirety by the terms of such agreements themselves. Please refer to such agreements and the form of Notes, each of which is incorporated herein by reference and is an exhibit to this report as Exhibits 1.1, 1.2, 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13 and 4.14.
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